cc 1 t16_eng

1Q16 Earnings ReleaseC f C llConference CallMay, 11th 2016May, 11 2016

Highlights

The Bank’s leverage reached its turning point and the loan portfolio tends to maintain its current levels and, depending on a

favorable political and economic environment, could potentially expand.

Liquid balance sheet with a cash position of R$1.5 billion, equivalent to 53% of time deposits.

Excess capital, with a BIS ratio of 15.1%, being 14.7% in Tier I Capital.

Loan portfolio coverage ratio at around 5% as a result of a significant increase in provisions in the periods.

R t ti f 14 9% i l d d i i t ti i i fl ti i Retraction of 14.9% in personnel and administrative expenses, even in an inflationary scenario.

Continuous liability management with a diversified portfolio and adequate terms.

2/17Investor Relations | 1Q16 |A parte de imagem com identificação de relação rId27 não foi encontrada no arquivo.

Financial Highlights

-5.6%-25.1%

Total FundingTotal Loan Portfolio1Shareholders' Equity

R$ million

-31.6%

1,244 1,163 1,174

+1.0%

8,367 6 270

-8.6%

9,657 6 933 6 608

-4.7%

Mar-15 Dec-15 Mar-16

8,3676,859

6,270


9,657 6,933 6,608


-200 bps. -40 bps.

ROAENIM Net Income

4.0%3 2%

-120 bps.

200 bps.

3 6%

-70 bps.-17.5%

-20.9%

3.2%

2.0%

1Q15 4Q15 1Q16

3.3% 3.6%2.9%

1Q15 4Q15 1Q16

10 10 8

1Q15 4Q15 1Q16


1 Includes Stand by LCs, Bank Guarantees, Credit Securities to be Received and Securities (bonds, CRIs, eurobonds and fund shares)

Product and Revenue Diversification

Pine Investimentos

Treasury0%

1Q16

Pine I i

Treasury0 0%

1Q15Revenue Mix

FICC23.1%

3.2%

FICC10.3%

Investimentos3.4%

0.0%

Credit52.4%

Bank Guarantees 21.3%

Credit72.4%

Bank Guarantees 13.9%

Business Lines

Corporate Credit: credit and financing products

FICC: instruments for hedging and risk management FICC: instruments for hedging and risk management

Pine Investimentos: Capital Markets, Financial Advisory, Project & Structured Finance and Research


Net Interest Margin

-200 bps.

NIM Main Impacts

4.0%3.2%

-120 bps. QoQ: Lower revenue contribution from treasury.

YoY: Lower revenues with credit recoveries.3. %

2.0%

1Q15 4Q15 1Q16

NIM Breakdown

R$ million

1Q16 4Q15 1Q15

Financial Margin

Income from financial intermediation 71 73 54

Overhedge effect (38) (15) 34

Income from financial intermediation 33 58 88


Expenses and Efficiency RatioRigorous cost control.

Personnel and Administrative Expenses

R$ millionR$ million

1Q16 4Q15 1Q15 QoQ YoY

Personnel expenses 20 23 23 -13.7% -10.5%

Other administrative expenses 16 19 18 -16.6% -12.9%

Subtotal 36 42 41 -14.9% -11.6%

Non-recurring expenses (2) (4) (1) -42.3% 51.8%

Total 34 38 39 -12.1% -14.0%

Employees1 344 361 413 -4.7% -16.7%1 Including outsourced ones

Expenses and Efficiency Ratio

23 23

39.1%60.0%

81.6%

00%

50%

100%

25

30

35

40

Personnel Expenses

2018 19

16

-150%

-100%

-50%

10

15

20 Other administrativeexpenses

Recurring EfficiencyRatio (%)


-200%0

5

1Q15 4Q15 1Q16

Loan PortfolioThe portfolio amounted to R$6.6 billion...

R$ million

-31.6%

1

-4.7%

909

Trade finance: 6.6%8,621

9,657

3,191

2,896

585

626

485438

Trade finance: 6.6%

Bank Guarantees: 34 1%

7,691

6,9336,608

1,1181,074

924

2,492

2,3732,250

Bank Guarantees: 34.1%

BNDES Onlending : 11 3%

48 0%2

4,440 4,0663,650 3,282 3 172

794 747BNDES Onlending : 11.3%

Working Capital: 48.0%3,282 3,172

Mar-15 Jun-15 Sept-15 Dec-15 Mar-16

Working Capital:


1 Includes Stand by LC2 Includes debentures, CRIs, Hedge Fund Shares, Eurobonds, Credit Portfolio acquired from financial institutions with recourse and Individuals

Continuous Loan Portfolio Management...with improved sector diversification.

Sugar andSugar and Ethanol

13%Construction Material

Meatpacking2%

Food Industry1%

Other9%

Sectors Rebalance

12%12%12%13%11%9%

12%13%12%12%12%8%

13%13%13%12%15%20%

Sugar andEthanol

Energy

Real Estate

Energy12%

Specialized Services

3%

Vehicles and Parts2%

2%1%

7%6%7%5%5%5%10%10%10%10%8%8%10%10%8%8%7%8%

Engineering

Agriculture

Transportation

Real Estate12%

Metallurgy

Chemicals3%

Retail3%

36%36%38%40%43%42%

Mar‐16Dec‐15Mar‐15Mar‐14Mar‐13Mar‐12

Transportationand Logistics

OthersEngineering10%

Agriculture10%

Transportation and Logistics

7%Telecom

4%

Foreign Trade4%

Metallurgy3%

The composition of the portfolio of the 20 largest clients changed by over 25% in the past twelve months;

The share of wallet of the 20 largest clients remained at around 30%, in line with market peers.


Main SectorsSugar and Ethanol | Energy| Real Estate

Sugar and Ethanol (13%) Energy (12%)

Exposure by Product Exposure by State Exposure by Product Exposure by Segment

Guarantees60%

BNDES Onlending

11%Wind Power72%Distributors

Equip. Supplier

7%

SHPs UHEs4%

SP66%

PR8%

GO3%

Working Capital

59%

BNDES Onlending

11%

Trade Finance

4%

Working Capital

29%

72%

Transmitting9%

Distributors8%

MG23%

59%

Guarantees26%

Real Estate (12%)

Exposure by Product Exposure by Segment

Residential Lots44%

Commercial4%

Exposure by Product Exposure by Segment

Working Capital

79%

Guarantees21%

Warehouse12%

Mall10%

4%


Residential30%

Main SectorsEngineering | Agriculture

Engineering (10%) Agriculture (10%)

Exposure by Product Exposure by Product

Trade Finance

7%

Guarantees1%BNDES

Onlending3%

Working Capital

76%

BNDES Onlending

16%Working Capital

83%

Guarantees14%

Exposure by StateExposure by Segment

MT33%

Others9%

Concession34%

Oil and Gas

Energy3%

SP32%

BA11%

PR9%

MS6%

9%

Transporta-tion32%

Industrial27%

4%


11%32%

Loan Portfolio Quality~90% of the loan portfolio is classified between AA-C ratings.

AA A B

March 31st, 2016

Loan Portfolio Quality – Res. 2,682 Non Performing Loans > 90 days (Total Contract)

AA-A31.6%

B29.1%

0.7% 0.3% 0.3%1.1%

2.1% 1.8%1.2%

1.7%0.7%

CD-E

5.9%

F-H4.6%

Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolio

Mar-14 Jun-14 Sept-14 Dec-14 Mar-15 Jun-15 Sept-15 Dec-15 Mar-16

C28.8%

5.9%

546%550 0%

1050.0%

Contracts Overdue: total amount of the contracts overdue for more than 90 days / Loan Portfolioexcluding Bank Guarantees and Stand-by Letters of Credit.

Credit Coverage Collaterals

6.4%

9.3%10.5%

08%

10%

12%

07%

09%

11%

161% 80%50.0%

550.0%

Products Pledge

40%

Investments3%

4.1%5.1% 4.9%

00%

02%

04%

06%

‐01%

01%

03%

05%

Mar-15 Dez-15 Mar-16 ReceivablesProperties l d


1D-H Portfolio: D-H Portfolio / Loan Portfolio Res. 2,6822Coverage of Total Portfolio: Provisions / Loan Portfolio Res. 2,682 3Coverage D-H Overdue Portfolio: Provisions / D-H Overdue Portfolio

D-H Portfolio Coverage of Total Portfolio Coverage of D-H Overdue Portfolio

15%Pledge42%1 2 3

FICCSolid trackrecord.

Notional Amount

MtM

March 31st, 2016 R$ million

Client Notional Derivatives by Market Notional Value and MtM

Currencies79%

349 366

560479

398

894

MtM

Stressed MtM

Commodities12%

Fixed Income9%

7 482 7 948 3 270 4 941 4 845

(103 )33

160

(171 )

7,482 7,948 3,270 4,941 4,845


Market Segments Portfolio Profile

Fixed income: Fixed, Floating, Inflation, Libor

Currencies: Dollar, Euro, Yen, Pound, Canadian Dollar,Australian Dollar

Scenario on March 31st, 2016:

Duration: 176 days

Mark-to-Market: R$398 million

Commodities, Sugar, Soybean ( Grain, Meal and Oil), Corn,Cotton, Metals, Energy

$

Stress Scenario (Dollar: +31% and Commodities Prices: -30%):

St d MtM R$ 171 illi


Stressed MtM : R$-171 million

Pine Investimentos6th biggest bank in fixed income market, and the 2nd player in short-term transactions.

R$25,000,000

Promissory note

Selected Transactions

Capital Markets: Structuring and Distribution of Fixed CRI

R$21,300,000

Bridge Loan

R$18,000,000

y

Lead Coordinator

Income Transactions.

Financial Advisory: Project & Structured Finance, M&A,

CRI

Lead Coordinator

Bridge Loan

Coordinator

October, 2015

Infratructure

R$10,300,000

and hybrid capital transactions.

Research: Macro and Commodities.

December, 2015 December, 2015

P j t Fi

R$7,500,000

Debent res

R$500,000,000

Debentures

Lead CoordinatorR$ million

Fee Generation

Lead Coordinator

Project Finance Debentures

Coordinator

P j t Fi

R$104,000,000

September, 2015

Lead CoordinatorLead Coordinator

October, 2015

P j Fi

R$78,000,000

September, 2015

R$20,000,000

Project Finance

Coordinator

Project Finance

Coordinator

CRI

Lead Coordinator

1 1


July, 2015

Coo d ato

July, 2015

Coordinator

June, 2015

Lead Coordinator

4Q15 1Q16

FundingDiversified sources of funding...

R$ million

48% 47% 41% 53% 53% Cash over Deposits

8,367Trade Finance: 5.6%

837

819 1 029

773

735 545 113

61

929

605692

497

352

7,564 7,409

6,859

6,270

Private Placements: 1%

Multilateral Lines: 12.4%

International Capital Markets:3.9%

1.0%

1 161 806

509476 207 295 284

796787

764 751 761

338272

318 279 244

819 1,022 1,029777 Financial Letter : 12.1%

Local Capital Markets: 4.5%

Onlending: 12.1%

361

1,2731,322 1,321 1,570 1,662

157197 359

336 21824

18 3318 17

1,1611,091 952 806 759 Demand Deposits: 0.3%

Interbank Time Deposits: 3.5%

High Net Worth Individual TimeDeposits: 26.5%

1,209 951 853 841 787

361291 343 324 348

Mar-15 Jun-15 Sept Dec-15 Mar-16

Corporate Time Deposits: 5.5%

Institutional Time Deposits:12.6%


Asset & Liability Management... matching assets’ and liabilities’ duration.

77% 76% 9.00

10.00

Expanded loan Porfolio

Loan Portfolio excludingBank Guarantees

Leverage Credit over Funding Ratio

76%70%

66% 69%7.8x

7.1x6.5x

6.0x5.6x

5.2x4.7x

4.4x3.9x 3.7x

4.00

5.00

6.00

7.00

8.00

Mar-15 Jun-15 Sept-15 Dec-15 Mar-16 ‐

1.00

2.00

3.00


8.5 8.5 Total Deposits Others

Mar 15 Jun 15 Sept 15 Dec 15 Mar 16

Leverage: Expanded Loan Portfolio / Shareholders’ EquityExpanded Loan Portfolio excluding Bank Guarantees and Stand-by Letters of Credit /

Shareholders’ Equity

Credit over Funding ratio: Loan Portfolio excluding Bank Guarantees and Stand-by Letters ofCredit / Total Funding

Total Deposits over Total FundingR$ millionR$ billion

Asset and Liability Management (ALM)

0.01.3

0.6

2.9

0.60.7Cash and cash equivalents

Assets financed through REPOs

Trading portfolio assets

Secured funding

Demand deposits

REPO Financing

64% 63% 61% 55% 52%

Total Deposits Others

6,8598,367 7,564 7,409 6,270

0.4

5.0

4.0

Coverage of 126%

Credit Portfolio

Other liabilities

Unsecured funding

39% 45% 48%

64% 63% 61%


1.2

0.4

Assets

0.2

0.1

Liabilities

Other assets

Illiquid assets

Other liabilities

Equity36% 37% 39% 45%


Capital Adequacy Ratio (BIS), Basel III BIS ratio surpassed 15%.

0.9% 0.4%13.0% 13.1% 13.1%

15.0% 15.1%

12 3%14.1% 14.7%

0.8% 0.8% 0.9%

13.0% 13.1% 13.1%

12.2% 12.3% 12.2%

Mar 15 Jun 15 Sept 15 Dec 15 Mar 16Mar-15 Jun-15 Sept-15 Dec-15 Mar-16

Tier II Tier IMinimum Regulatory Capital (11%)


Investor Relations

Norberto Zaiet Junior

CEO

João BritoCFO

Raquel Varela BastosHead of Investor Relations, Funding & Distribution, Marketing & Press

Luiz MaximoInvestor Relations Coordinator

Gabriel NettoInvestor Relations Analyst

Phone: (55 11) 3372-5343

[email protected] p


This report may contain forward-looking statements concerning the business prospects, projections of operating and financial results and growth outlook of PINE. These are merely projections and as suchare based solely on management’s expectations regarding the future of the business. These statements depend substantially on market conditions, the performance of the sector and the Brazilian economy(political and economic changes, volatility in interest and exchange rates, technological changes, inflation, financial disintermediation, competitive pressures on products and prices and changes in taxlegislation) and therefore are subject to change without prior notice.